(Reuters) – Ratings agency S&P Global on Wednesday cut Argentina’s long-term local currency sovereign credit rating by two notches to “CCC-” from “CCC+” to reflect increased vulnerabilities over the next six months given the concentration in the peso-debt profile.
Argentina had conducted a local debt exchange last week offering the same dual bonds as in August 2022 to lessen peso-dominated maturities over the remainder of the year, S&P said.
“Notwithstanding additional external official financing, reflecting progress under its EFF, macroeconomic instability and a polarized political landscape are exacerbating vulnerabilities for local debt placements,” the agency added.
The agency’s outlook on Argentina remained unchanged at negative.
(Reporting by Shreyaa Narayanan in Bengaluru; Editing by Krishna Chandra Eluri)
